Lecture 35 ยท ECP ran Java House from Nairobi and sold it through Mauritius, and the gain was Kenyan all along.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: A Mauritian fund sold its stake in Java House and paid no Kenyan tax, saying the deal was offshore. The Tribunal and High Court held the fund's real management sat in Nairobi, so the gain was Kenyan, though by then the company had no assets left to pay it.
Illustration: Precursor
A private equity fund holds a Kenyan business through a company registered abroad. The sale is signed offshore and the money is received offshore, and the fund files no capital gains tax in Kenya. The authority asks where the decisions were actually made.
Put yourself in the fund manager's chair. When the paperwork is foreign but the judgement is Kenyan, where does the gain accrue?
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Lecture 126 ยท A director kept meeting the taxman instead of appealing, and four years on the bill had only grown.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: KRA confirmed a KSh 899,328 income-tax bill against Saphira, and its director spent four years in meetings and relied on his compliance certificates instead of appealing. The tribunal held meetings do not stop the thirty-day clock, a certificate is not proof of payment, and refused leave to appeal out of time; the debt had grown to KSh 1.4 million.
Tax and financial judgement ยท 4 min read ยท Paid
Lecture 125 ยท A rice importer called cleaning and repacking manufacturing, and the court said packaging is not making.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: Mjengo claimed an investment deduction on KSh 1.5 million of machinery that cleaned and repackaged imported rice, calling it manufacturing. Through three forums the ruling held that packaging alone is not making goods, the rice remained rice, and a definition framed with 'means' is exhaustive. The deduction was refused.
Tax and financial judgement ยท 4 min read ยท Paid
Lecture 124 ยท A contractor said the money was his clients', had no agreements to show it, and the assessment stood.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: KRA billed MU-BEI KSh 1.7 million after its eTIMS invoices far exceeded its declared sales. The company said the money was clients' funds for materials, passed on as an agent, but had no written agency agreements and no reconciliation. The tribunal held VAT fell due on the invoices and dismissed the appeal.
Tax and financial judgement ยท 4 min read ยท Paid